HB2626 HD1

SECTION 1. (a) The department of health shall hire a third-party consultant to conduct a study on issues relating to the upgrade or conversion of cesspools to department-approved wastewater treatment systems or the connection of cesspools to a sewerage system statewide, to be referred to collectively as "cesspool conversion", as required by Act 125, Session Laws of Hawaii 2017. The study shall be conducted in collaboration with the cesspool conversion working group established under section two of this Act.

(b) At a minimum, the study shall:

(1) Develop a long-range, comprehensive plan for cesspool conversion statewide of all cesspools by 2050, and of all priority 1, 2, and 3 cesspools, as identified in the Department's report conducted pursuant to Act 125, Session Laws of Hawaii 2017, within twenty years, to be known as the cesspool conversion plan;

(2) Identify areas in the State where data is insufficient to determine a priority classification of cesspools for conversion and determine methods and resources needed to collect that data and conduct analysis of those areas;

(3) Examine financing issues and the feasibility of various mechanisms, including grants, loans, tax credits, fees, special assessment districts, requirements for conversion at point of sale, and any other appropriate mechanisms for accomplishing and funding cesspool conversion, or any combination of these mechanisms;

(4) Consider owners' ability to pay for cesspool conversions, especially how assistance can be provided for lower-income homeowners;

(5) Consider the most cost-effective approach to cesspool conversion;

(6) Include feedback from community members in each county and from each county's wastewater division;

(7) Consider best practices in other jurisdictions;

(8) Consider alternative wastewater equipment and technologies appropriate to the various areas where cesspools are located that may better protect the environment at lower cost and how the equipment or technologies can be incorporated as part of the long-term solution to wastewater treatment issues. These alternatives may include without limitation graywater systems, constructed wetlands, and other available technologies;

(9) Research and recommend measures to encourage and stimulate research and innovation for new wastewater technologies, including systems that treat waste not only for bacteria but also to remove nutrients and contaminants that impact the environment;

(10) Evaluate mandatory versus voluntary participation in the cesspool conversion plan;

(11) Consider whether exemptions should be granted for some mandatory conversions based upon geology, topography, soil type, availability of land, or other relevant factors and make recommendations to the department relating to establishing those exemptions; and

(12) Consider any other information deemed necessary or appropriate by the department, the cesspool conversion working group, or the third-party consultant.

SECTION 2. (a) There is established a cesspool conversion working group within the department of health for administrative purposes. The working group shall consist of the following members:

(1) The director of health, or the director's designee, who shall serve as the chair of the working group;

(2) The branch chief of the clean water branch of the department of health, or the branch chief's designee;

(3) The branch chief of the wastewater branch of the department of health, or the branch chief's designee;

(4) The branch chief of the safe drinking water branch of the department of health, or the branch chief's designee;

(5) The administrator of the division of aquatic resources of the department of land and natural resources, or the administrator's designee;

(6) Four members representing the appropriate wastewater agency from each county, appointed by the mayor of the county in which the agency is located;

(7) A county director of finance, appointed by the Hawaii council of mayors;

(8) A member representing the wastewater industry, appointed by the president of the senate;

(9) A member representing the financial and banking sectors, appointed by the speaker of the house;

(10) A member of the University of Hawaii, institute of marine biology, appointed by the director of the institute of biology;

(11) A member of the University of Hawaii, water resources research center, appointed by the director of the water resources research center; and

(12) A county director of planning, to be appointed by the Hawaii council of mayors.

(b) The cesspool conversion working group shall work in collaboration with the third-party consultant hired by the department of health to conduct the study pursuant to section 1 of this Act.

(c) Members of the cesspool conversion working group shall be exempt from section 26-34, Hawaii Revised Statutes, and shall serve without compensation but shall be reimbursed for reasonable expenses necessary for the performance of their duties, including travel expenses, to attend meetings of the working group and in the discharge of duties of the working group;

(d) No member of the cesspool conversion working group shall be made subject to section 84-17, Hawaii Revised Statutes, solely because of that member's participation as a member of the working group.

(e) The cesspool conversion working group shall cease to exist on July 1, 2020.

SECTION 3. The director of health, in consultation with the cesspool conversion working group, shall submit interim reports, including findings and recommendations, to the legislature no later than December 31, 2019, and shall submit a final report, including findings, recommendations, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2020.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2018-2019 to conduct a study on the upgrade, conversion, or connection of cesspools statewide, including financing issues, and financing mechanisms.

The sum appropriated shall be expended by the department of health for the purposes of this Act.

SECTION 5. This Act shall take effect on July 1, 2118, and shall be repealed on July 1, 2020.

HOUSE OF REPRESENTATIVES	H.B. NO.	2626
TWENTY-NINTH LEGISLATURE, 2018		H.D. 1
STATE OF HAWAII